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Importance and Elements of Delegation of Authority | Business Management

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Read this article to learn about the importance and elements of delegation of authority!

In every organisation managers are assigned lot of work and manager alone cannot perform all the work. He divides the work among different individuals working under him according to their qualification and get the work done from them. The manager begins with sharing of his responsibilities with his subordinates. He deliberately passes some of his responsibilities to his subordinates.

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After passing the responsibilities the manager also shares some of his authority, i.e., power to make decision with his subordinates so that the responsibilities can be carried on properly. To make sure that his subordinates perform all the work effectively and efficiently in the expected manner the manager creates accountability and this whole process is known as delegation. So delegation can be defined as:

Principal of Absoluteness of Accountability:

Delegation is a very important process to carry on the work systematically in the organisation. But delegation is not a process of abdication which means accountability is absolute. It can never be passed or delegated. After creating accountability on subordinates, the superiors also remain accountable. For example, if the sales manager is assigned a target of selling 1,000 units in one month, he divided this target among the five salesmen working under him. One of the salesmen fell sick.

So, at the end of one month only 800 units could be sold. In such a situation the accountability lies with the manager although he has delegated or passed this target to his subordinates. But by passing or delegating the responsibilities he cannot get rid of accountability. He should have checked in between and supervised from time to time whether the work is going in right direction or not and taken timely action.

Importance of Delegation:

1. Effective management:

In the delegation process managers pass routine work to the subordinates. So they are free to concentrate on other important matters. The main job of managers is to get the work done effectively and by delegating the authorities and responsibilities managers can get the work done effectively and efficiently from the subordinates.

2. Employees’ Development:

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As a result of delegation employees get more opportunities to utilise their talents. It allows them to develop those skills which help them to perform complex task. Delegation help in making better future managers by giving them chance to use their skills, gain experience of work related to higher job position.

3. Motivation of employees:

In the delegation when the manager is sharing his responsibilities and authority with the subordinates it motivates the subordinates as they develop the feeling of belongingness and trust which is shown to them by their superiors. Some employees can be motivated by such kind of non-financial incentives.

4. Facilitates organisational growth:

In the process of delegation when the managers are passing their responsibility and authority to the subordinates they keep in mind the qualification and capability of all the subordinates. This leads to division of work and specialisation which is very important for organisational growth.

5. Basis of Management Hierarchy:

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Delegation establishes superior-subordinate relationship which is the base for hierarchy of managers. The extent of power delegated to subordinates decides who will report to whom, and the power at each job position forms the Management Hierarchy.

6. Better Coordination:

In delegation systematically responsibility and authority is divided and employees are made answerable for non-completion of task. This systematic division of work gives clear pictures of work to everyone and there is no duplication of work clarity in duties assigned and reporting relationship brings effective coordination in the organisation.

7. Reduces the work load of managers:

In the process of delegation, the managers are allowed to share their responsibilities and work with the subordinates which help the managers to reduce their work load. With the process of delegation the managers can pass all their routine work to the subordinates and concentrate on important work. Without delegation managers will be overburdened with the work.

8. Basis of superior-subordinate relationship:

In the delegation process only two parties are involved that is superior and subordinate. If superiors share or pass their responsibilities and authorities to the subordinates it indicates good relationship between the superior and subordinate because superiors will transfer their responsibility and authority to their subordinates only when they have trust in them. So delegation improves the relations between superiors and subordinates.

Elements of Delegation/Process of Delegation:

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There are three elements of delegation:

i. Responsibility

ii. Authority

iii. Accountability

1. Responsibility:

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Responsibility means the work assigned to an individual. It includes all the physical and mental activities to be performed by the employees at a particular job position. The process of delegation begins when manager passes on some of his responsibilities to his subordinates which means responsibility can be delegated.

Features of Responsibility:

1. Responsibility is the obligation of a subordinate to properly perform the assigned duty.

2. It arises from superior subordinate relationship because subordinate is bound to perform the duty assigned by his superior.

3. Responsibility flows upward because subordinate will always be responsible to his superior.

2. Authority:

Authority means power to take decision. To carry on the responsibilities every employee need to have some authority. So, when managers are passing their responsibilities to the subordinates, they also pass some of the authority to the subordinates. The delegating authority is the second step of organising process. While sharing the authority managers keep in mind that the authority matching to the responsibility should only be delegated. They shall not pass all their authority to their subordinates.

Features of Authority:

(1) Authority refers to right to take decision due to your managerial position.

(2) Authority determines superior subordinate relationship. As subordinate communicates his decisions to subordinate expecting compliance from him as per his directions.

(3) Authority is restricted by law and rules and regulations of the organisation.

(4) Authority arises from the scalar chain which links various job positions.

(5) Authority flows upward as we go higher up in management hierarchy the scope of authority increases.

(6) Authority must be equal to Responsibility i.e.,

Authority = Responsibility

3. Accountability:

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To make sure that the employees or subordinates perform their responsibilities in their expected manner, the accountability is created. Accountability means subordinates will be answerable for the non-completion of the task; creating accountability is the third and final step of delegation process.

The accountability cannot be passed or delegated. It can only be shared with the subordinates which means even after delegating responsibility and authority the managers will be accountable for non-completion of task.

If the production manager is given the target of producing 20 machines in one month’s time and he divided this target between four foremen working under him, i.e., 5 machines to be produced by each foreman but one foreman could not achieve the target and at the end of the month only 17 machines are manufactured, then production manager will be held accountable for non-completion of target as accountability cannot be transferred or shared: it is an absolute term.

Features of Accountability:

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(1) Accountability refers to answerable for the final output.

(2) It cannot be delegated or passed.

(3) It enforced through regular feedback on the extent of work accomplished.

(4) If flows upward, i.e., subordinate will be accountable to his superior.